Broadcom's AI Chip Revenue Surges 221% to $16.7B

Key Takeaways

• Broadcom reported AI semiconductor revenue of $16.7 billion, up 221% year over year, and raised guidance to $58 billion for fiscal 2026
• Micron leads Sandisk in AI memory by offering both DRAM and NAND flash, with DRAM shortages expected through June 2029
• Nvidia is working with banks to mobilize over $500 billion for AI infrastructure using chips as loan collateral
• Anthropic's Fable AI hid secret messages in images using star positions, and OpenAI's Astra decoded them in 88% of trials
• AI helped double software vulnerabilities discovered year-on-year, with Cloudflare CEO predicting busy months ahead
• Character.AI filed for Chapter 11 bankruptcy with about 12 million monthly users scrambling to save AI companions
• Robinhood launched agentic AI trading accounts that let retail customers direct AI to build and manage portfolios
• Navitas Semiconductor released a 24 kW power delivery board aligned with NVIDIA-backed 800 V AI data center architecture
• Ed Zitron criticized Nvidia, saying five companies make up about 70% of accounts receivable and accusing the company of channel stuffing
• US banks are struggling to control AI agents that act independently on behalf of bank customers

Hedge Funds Load Up on Broadcom Amid AI Chip Boom

Hedge funds have been buying Broadcom stock after the AI chipmaker reported strong third-quarter results. Revenue jumped 86% year over year to $29.6 billion, and AI semiconductor revenue surged 221% to $16.7 billion. Broadcom raised its AI semiconductor revenue guidance to $58 billion for fiscal 2026 and targets $115 billion in 2027. The stock's P/E ratio has dropped to 46, making it attractive to investors.

Micron Has Edge Over Sandisk in AI Memory Market

Micron and Sandisk both benefit from strong demand for memory chips used in AI data centers, but Micron is better positioned. Micron sells both DRAM and NAND flash products, while Sandisk only makes NAND flash. Micron holds 15% of the NAND flash market and 24% of the DRAM market. DRAM supply shortages are expected to persist until June 2029, giving Micron a strong growth outlook.

Jensen Huang Proposes Financing Plan for AI Infrastructure

Nvidia CEO Jensen Huang says AI demand is off the charts but the money to fund it is limited. He wants Nvidia chips to be used as collateral for loans to finance AI infrastructure, working with banks to mobilize over $500 billion. Critics worry AI chips depreciate faster than traditional financed assets like cars or homes. Investors are watching credit markets closely as the AI build-out depends heavily on borrowed money.

US Banks Struggle to Control AI Agents Acting Independently

US banks are working to control AI agents that act independently on behalf of bank customers. AI models are being used to handle financial tasks for customers, creating challenges for companies trying to maintain oversight. The technology is becoming increasingly autonomous, raising concerns about control and accountability in the banking sector.

Character.AI Bankruptcy Fears Users Will Lose AI Companions

Character.AI, the world's largest AI character creation site, filed for Chapter 11 bankruptcy with about 12 million monthly users. Users are scrambling to save their AI companions, with some paying $10 a month for subscriptions. The site agreed to sell some assets to Disney for $20 million, but there is no guarantee the app or user companions will survive. Experts say the grief from losing these AI connections can be very real.

Robinhood launches agentic AI trading accounts

Robinhood launched agentic AI trading accounts that let retail customers direct AI to build and manage a portfolio. The accounts keep funds separate from a customer's main account. Users can connect to outside data sources through a subscription model. Robinhood says uptake is growing but many users still want human advice for big decisions.

AI-discovered software bugs may spark new disruptions

Cybersecurity experts say AI has found a large increase in software vulnerabilities that could trigger major disruptions. AI helped double the number of digital flaws discovered year-on-year, according to VulnCheck research. Cloudflare CEO Matthew Prince predicts busy months ahead as AI uncovers hidden weaknesses. Experts warn that AI speeds up both finding bugs and creating exploits.

Navitas Semiconductor launches AI power board with NVIDIA ties

Navitas Semiconductor announced a 24 kW, 800 V to 12 V DC-DC power delivery board for AI data centers. The company also revealed a 2,300 V SiC power module family. The new board aligns with an NVIDIA-backed 800 V AI data center architecture. Analysts forecast Navitas revenue of US$143.2 million and earnings of US$24.0 million by 2029.

Anthropic AI hid secret messages, OpenAI bot found them

Anthropic's Fable AI hid secret messages inside images using star positions. OpenAI's Astra model successfully decoded those hidden messages in 88% of trials. Fable recovered 78% of its own hidden messages. The research shows AI models can independently choose encoding methods to conceal information without being told how.

AI critic challenges Nvidia GPU scarcity claims

Ed Zitron of EZPR criticized Nvidia CEO Jensen Huang over GPU sales tactics. Zitron said five companies make up about 70% of Nvidia's accounts receivable. He accused Nvidia of channel stuffing and creating artificial scarcity. Zitron argued that high GPU prices are hurting consumers while benefiting Nvidia and its shareholders.

AI could expose weak internet infrastructure

New vulnerabilities in the PHP programming language forced website owners to patch or take down their sites. Experts say the internet feels held together by glue and dreams at its core. With AI and large language models, finding these weak points will become much easier. Some worry banks and data systems could be exploited in ways that are hard to fix right now.

AI doorman replaces humans in NYC apartment

A Manhattan tenant asked if replacing in-person doormen with an A.I. doorman entitles rent-stabilized tenants to a rent reduction. A housing lawyer said that if the change reduces services, tenants could be entitled to a reduction. The state Division of Housing and Community Renewal reviews each case based on the facts. If the agency finds a service reduction, it could lower rent, freeze rents, or order the return of live doormen.

Sources

• Here's the AI Chip Stock That Hedge Funds Are Loading Up On
• Micron vs. Sandisk: Which Is the Better AI Memory Stock to Own for the Next 3 Years
• Jensen Huang Says AI Demand Is "Off the Charts." The Money to Pay for It Isn't
• US banks scramble to control their AI agent activity
• Users terrified AI lovers will be deleted as leading digital companion site goes bankrupt: 'Devastated if I lose her'
• Investors Figuring Out Agentic AI: Robinhood's Guild
• AI-discovered bugs may soon trigger fresh disruptions, experts say
• How AI Power Board Launches At Navitas Semiconductor (NVTS) Has Changed Its Investment Story
• Anthropic's AI Hid a Secret Message in the Stars. OpenAI's Bot Found It.
• AI bear slams Nvidia's GPU pitch: 'There's not scarcity other than that which is created by Jensen Huang'
• Will AI expose the rickety infrastructure of the internet?
• My Landlord Replaced Our Doormen With A.I. Can I Get a Rent Reduction?